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Investing.com - BofA Securities has upgraded Feng Tay Enterprises (TPE:9910) from Underperform to Buy, while significantly raising its price target to NT$148.00 from NT$85.00, representing a 74% increase.
The upgrade comes as BofA anticipates Feng Tay will benefit from a likely turnaround at Nike, which contributes 86% of the company’s revenue. The investment firm believes the worst earnings downcycle for Feng Tay is now in the past.
BofA Securities has raised its 2025 and 2026 earnings per share estimates for Feng Tay by 6% and 2% respectively, citing better-than-expected July and August earnings results. The firm also increased its target multiple from 15x to 25x on 2026 estimated earnings.
Feng Tay currently trades at 23x/20x 2025/2026 estimated price-to-earnings ratio, which BofA notes is largely in line with Taiwanese textile peers but at a discount to the company’s historical average of 25x.
The investment bank’s new target multiple of 25x aligns with Feng Tay’s historical average, as potential revenue growth re-acceleration from Nike’s turnaround appears to be balanced against macroeconomic and tariff uncertainties.
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